Web site design getting personal

When OurHouse.com was designing its new Web site selling home improvement goods, to be launched next month, a top priority was creating a "sticky" site that would give customers a personalized shopping experience and inspire them to return and buy more the next time around. With 22,000 products for sale and plans to add more, the Evanston-based company is the online provider for Oak Brook-based Ace Hardware Corp. and other brands. One strategy the company is employing to attract repeat business to its Web site is using software that recognizes repeat shoppers. The site is automatically customized based on information from customers' previous purchases on the site, says Gary Briggs, the company's chief marketing officer. For example, if someone purchased gardening items in the past, a message on planting bulbs or gardening tools on sale might pop up on the home page when that person revisits the site. "Every page on our site has some personalization to it," says Mr. Briggs. "We even personalize our e-mail by sending out information about products that we know will be interesting based on a few questions we ask when people register for the site." Indeed, it's no longer good enough to hang out a shingle on the Internet and wait for buyers to come. As e-commerce takes off, Web design consultants warn that companies with a Web presence need to get more sophisticated about making their Web sites "sticky," or able to attract and retain customers. Businesses that design their sites with the customer in mind and take advantage of the technology available to develop personalized relationships with online shoppers may end up raking in more online dollars than their competitors. A recent study of leading Web sites showed that few companies are working to personalize the contact they have with customers or promote other company products to people who have made purchases on their sites. Even the most basic strategies, such as asking whether a customer wants more information on other products, was ignored by close to half of the 50 Web sites surveyed, says Michael Smith, director of product marketing at Rubric Inc., the San Mateo, Calif.-based consulting firm that conducted the study. A dismal 16% of the companies questioned said they sent e-mail to customers as a follow-up, and of those, only 4% said they personalized the e-mail with the buyers' names. Only one in four of survey respondents said their site could recognize a repeat buyer. Some experts say those companies are missing out on a huge opportunity. "People are more willing to come back to your Web site if they have had an experience that's tailored to them, rather than a canned experience," says Anindya Datta, director of the iXl Center for E-Commerce at the Georgia Institute of Technology in Atlanta. He also is founder and CEO of Chutney Systems LLC, an Atlanta-based start-up venture that developed a suite of software applications to help businesses increase the probability online shoppers will buy something at their site. One of Chutney Systems' features enables Web sites to do "dynamic profiling," which tries to predict in real time where on the site the user is likely to go next. After the assessment is made, the Web site automatically customizes the catalog that appears on the side of the page to entice the user to search for items that may interest them, says Mr. Datta. Web design consultants insist that conducting business online represents a tremendous opportunity for companies to become relationship-focused and, ultimately, sell more products and services. Today's technology gives Web site owners subtle ways to learn a little more about their customers each time they come back to the company's site, says David Ormesher, CEO of Closerlook.com, a Chicago-based digital strategy and design firm that worked with OurHouse.com on designing its site. Initially, an e-mail address might be requested. The next time the customer returns to that site, a few more questions might be asked. Eventually, the Web site is able to anticipate a shopper's needs, greet him and offer him a product that would be useful to him specifically, he says. Building these sophisticated applications into a Web site doesn't come cheap. A Web site owner could spend between $500,000 and $1 million for the total design and build-out of a customized site, estimates Mr. Ormesher. Chutney Systems' entire suite of applications costs more than $1 million, without integration. Web site owners would have to spend between $50,000 and $250,000 more to integrate those products into their own e-commerce set-up, if they don't have the in-house capability to do it themselves. But some businesses may not be able to afford forgoing a personalized site. "There are sites out there, like Amazon.com, that have raised the bar on customer service," says Mr. Ormesher. "If you want to play in that league, you need the infrastructure to handle it." SIDEBAR Experts offer their tips on making sites sticky So, how can you make your Web site "sticky"? Web design experts offer the following tips: * Design with the end-user in mind. Companies tend to market along product lines. Instead, items should be marketed around customers' activities. If home improvement is your business, offer pages about specific projects, such as remodeling a back deck, and include all the essential items needed for the projects. * Reserve space for customization. Save a bit of space on each page for customized content so specific data can be displayed for certain shoppers. * Build the architecture so you learn a little more each time your customer returns. Asking customers to fill out long forms the first time they visit often is a turn-off. Start with requesting an e-mail address and a password. Once customers have spent some time at the site, you can ask for a bit more information, such as a ZIP code so you can give them information on specials in their area. * Know your customers. Do they want speed or do they want to browse? Certain software applications enable Web site owners to offer different sites to customers, depending on whether they want to get the item they need quickly or shop leisurely. * Use personalization to deepen customer relationships. Companies should take advantage of the Internet's inherent one-to-one nature by using people's names on e-mails or any other contact with customers. * Target your e-mail marketing offers. If you have 1,200 customers and only 400 of them are likely to be interested in something, send e-mail to just the 400. It saves money and is less annoying. * Use continuous relationship marketing to build customer loyalty. Send out special e-mails with timely content based on customers' previous purchases. For example, if someone bought a printer online, you might consider sending a message to him every four months to remind him he might need toner. * If you already have a bricks-and-mortar company, integrate the offline and online experience to create a consistent customer experience with your brand name. For example, bookseller Barnes & Noble is putting kiosks in some of its stores so customers can go online and order a book from the warehouse if it's not available in the store.